May 2009 Euro area annual inflation down to 0.0% EU down to 0.7%

STAT/09/88 16 June 2009 May 2009 Euro area annual inflation down to 0.0% EU down to 0.7% Euro area 1 annual inflation was 0.0% in May 2009 2, down from 0.6% in April. A year earlier the rate was 3.7%. Monthly inflation was 0.1% in May 2009. EU 3 annual inflation was 0.7% in May 2009, down from 1.3% in April. A year earlier the rate was 4.0%. Monthly inflation was 0.1% in May 2009. These figures come from Eurostat, the Statistical Office of the European Communities. Inflation in the EU Member States In May 2009, the lowest annual rates were observed in Ireland (-1.7%), Portugal (-1.2%), Spain and Luxembourg (both -0.9%), and the highest in Romania (5.9%), Lithuania (4.9%) and Latvia (4.4%). Compared with April 2009, annual inflation fell in twenty-four Member States, remained stable in one and rose in one. The lowest 12-month averages 4 up to May 2009 were registered in Portugal (1.3%), Ireland (1.5%) and Germany (1.8%), and the highest in Latvia (11.2%), Lithuania (9.3%) and Bulgaria (8.3%). Euro area The main components with the highest annual rates in May 2009 were alcohol & tobacco (3.3%), hotels & restaurants and miscellaneous goods & services (both 2.2%), while the lowest annual rates were observed for transport (-4.8%), communications (-1.0%) and housing (-0.1%). Concerning the detailed sub-indices, restaurants & cafés (+0.18 percentage points) and electricity (+0.12) had the largest upward impacts on the headline rate, while fuels for transport (-1.02) and heating oil (-0.44) had the biggest downward impacts. The main components with the highest monthly rates were transport (0.5%) and communications (0.3%), while the lowest were recreation & culture (-0.4%) and health (-0.2%). In particular, fuels for transport (+0.08 percentage points) had the largest upward impact, while package holidays (-0.04) had the biggest downward impact. Annual inflation (%) in May 2009 in ascending order Euro area Euro IE PT ES LU FR BE DE AT CY SI EL IT SK NL FI MT area -1.7-1.2-0.9-0.9-0.3-0.2 0.0 0.0p 0.1p 0.5 0.5 0.7 0.8 1.1 1.5p 1.5 3.4 EU Member States outside the euro area EE EU CZ DK SE UK 5 BG HU PL LV LT RO 0.3 0.7p 0.9 1.1 1.7 2.3 3.0 3.8 4.2 4.4 4.9 5.9

May 09 May 08 Inflation rates in %, measured by HICPs Apr 08 Annual rates Mar 09 Mar 08 Feb 09 Feb 08 May 08 May 07 12 month average rates 4 May 09-08 May 08-07 Monthly rates Belgium (BE) -0.2 0.7 0.6 1.9 5.1 3.2-0.1 Germany (DE) 0.0 0.8 0.4 1.0 3.1 1.8-0.1 Ireland (IE) -1.7-0.7-0.7 0.1 3.7 1.5-0.4 Greece (EL) 0.7 1.1 1.5 1.8 4.9 3.0 0.2 Spain (ES) -0.9-0.2-0.1 0.7 4.7 2.3 0.0 France (FR) -0.3 0.1 0.4 1.0 3.7 1.9 0.1 Italy (IT) 0.8 1.2 1.1 1.5 3.7 2.6 0.2 Cyprus (CY) 0.5 0.6 0.9 0.6 4.6 2.8 0.7 Luxembourg (LU) -0.9-0.3-0.3 0.7 4.8 2.2 0.3 Malta (MT) 3.4 4.0 3.9 3.5 4.1 4.5 0.2 May 09 Netherlands (NL) 1.5p 1.8 1.8 1.9 2.1 2.2p 0.1p Austria (AT) 0.1p 0.5 0.6 1.4 3.7 2.1p 0.1p Portugal (PT) -1.2-0.6-0.6 0.1 2.8 1.3-0.2 Slovenia (SI) 0.5 1.1 1.6 2.1 6.2 3.4 0.6 Slovakia (SK) 1.1 1.4 1.8 2.4 4.0 3.2 0.1 Finland (FI) 1.5 2.1 2.0 2.7 4.1 3.3-0.1 Euro area (MUICP) 0.0p 0.6 0.6 1.2 3.7 2.1p 0.1p Bulgaria (BG) 3.0 3.8 4.0 5.4 14.0 8.3 0.0 Czech Republic (CZ) 0.9 1.3 1.7 1.3 6.8 3.7 0.1 Denmark (DK) 1.1 1.1 1.6 1.7 3.6 2.8 0.4 Estonia (EE) 0.3 0.9 2.5 3.9 11.4 6.8 0.0 Latvia (LV) 4.4 5.9 7.9 9.4 17.7 11.2-0.4 Lithuania (LT) 4.9 5.9 7.4 8.5 12.3 9.3-0.2 Hungary (HU) 3.8 3.2 2.8 2.9 6.9 4.4 1.5 Poland (PL) 4.2 4.3 4.0 3.6 4.3 4.0 0.6 Romania (RO) 5.9 6.5 6.7 6.9 8.5 7.2 0.0 Sweden (SE) 1.7 1.8 1.9 2.2 3.7 2.8 0.3 United Kingdom (UK) 5 : 2.3 2.9 3.2 3.3 : : EU (EICP) 6 0.7p 1.3r 1.3 1.8 4.0 2.7p 0.1p Iceland (IS) 15.7 16.3 19.9 21.6 11.7 17.6 1.4 Norway (NO) 2.9 2.9 2.6 2.8 2.8 3.4 0.3 EEA (EEAICP) 0.8p 1.3 1.4 1.9 3.9 2.7p 0.1p Switzerland (CH) -1.1-0.6-0.7-0.1 2.6 1.1 0.0 Source: Eurostat p = provisional : = data not available r = revised

Euro area inflation rates in % for main components, measured by HICPs Weight used in 2009 Annual rates 12 month average rates 4 May 09-08 May 08-07 Monthly rates Euro area (MUICP) May 09 Mar 09 Feb 09 May 08 May 09 May 08 Apr 08 Mar 08 Feb 08 May 07 00 All-items 1000.0 0.0p 0.6 0.6 1.2 3.7 2.1p 0.1p 01 Food 156.2 0.3p 0.9 1.6 2.3 6.4 3.6p -0.1p 02 Alcohol and tobacco 37.1 3.3p 3.3 3.4 3.2 3.4 3.4p 0.2p 03 Clothing 67.8 0.7p 0.7 0.4 0.1 0.7 0.5p 0.1p 04 Housing 156.3-0.1p 0.8 1.9 2.8 5.7 3.9p -0.1p 05 Household equipment 71.1 1.8p 1.8 1.9 1.9 2.0 2.0p 0.2p 06 Health 41.7 1.5p 1.7 1.8 1.5 1.6 1.8p -0.2p 07 Transport 151.4-4.8p -3.6-4.3-2.7 5.9 0.6p 0.5p 08 Communications 32.2-1.0p -1.6-1.8-1.4-1.7-1.9p 0.3p 09 Recreation and culture 96.6 0.6p 1.7 0.0 0.5 0.1 0.4p -0.4p 10 Education 10.4 0.5p 0.7 0.8 1.2 3.7 1.8p 0.0p 11 Hotels and restaurants 94.4 2.2p 2.6 2.2 2.9 3.3 3.1p 0.1p 12 Miscellaneous 84.7 2.2p 2.3 2.3 2.3 2.4 2.4p 0.2p All-items -excl. energy 904.3 1.4p 1.7 1.6 1.8 2.6 2.1p 0.0p -excl. energy, FoodAlcTob* 711.0 1.5p 1.8 1.4 1.7 1.7 1.7p 0.0p -excl. energy, unproc. food 829.7 1.5p 1.7 1.5 1.7 2.5 2.1p 0.0p -excl. energy, seas. food 866.2 1.5p 1.7 1.5 1.8 2.5 2.1p 0.0p -excl. tobacco 977.4 0.0p 0.5 0.5 1.1 3.7 2.1p 0.1p Energy 95.7-11.6p -8.8-8.1-4.9 13.7 2.1p 0.4p FoodAlcTob* 193.3 0.9p 1.4 1.9 2.5 5.8 3.6p -0.1p Source: Eurostat * FoodAlcTob = Food, alcohol and tobacco p = provisional COICOP May 09 / May 08 Euro area sub-indices with most important impacts Weight ( ) 2009 Rate (%) Impact (percentage points) 11.11 Restaurants and cafés 69.5 2.4p 0.18 04.51 Electricity 23.1 5.1p 0.12 04.11/2 Rents 59.6 1.8p 0.11 07.23 Maintenance of vehicles 24.2 4.1p 0.10 02.20 Tobacco 22.6 3.5p 0.08 01.12 Meat 36.5 1.8p 0.07 08.2/3 Telecommunications 30.6-1.2p -0.04 09.13 IT equipment 4.8-11.0p -0.05 01.14 Milk, cheese and eggs 22.7-2.6p -0.06 09.11 Audio-visual equipment 4.8-13.5p -0.07 04.53 Heating oil 7.5-39.5p -0.44 07.22 Fuels for transport 39.9-19.7p -1.02 May 09 / April 09 07.22 Fuels for transport 39.9 1.8p 0.08 01.16 Fruit 11.6 2.0p 0.02 08.2/3 Telecommunications 30.6 0.4p 0.01 07.23 Maintenance of vehicles 24.2 0.3p 0.01 04.42 Refuse collection 5.3 1.1p 0.01 09.33 Gardens, plants and flowers 6.5 0.9p 0.01 07.33 Air transport 6.0-2.6p -0.02 04.55 District heating 5.7-2.9p -0.02 01.17 Vegetables 15.4-1.2p -0.02 01.14 Milk, cheese and eggs 22.7-0.9p -0.02 04.52 Gas 18.5-1.2p -0.02 09.60 Package holidays 16.3-2.3p -0.04 Source: Eurostat p = provisional

Measures of inflation The annual rate measures the price change between the current month and the same month of the previous year. This measure is responsive to recent changes in price levels but can be influenced by one-off effects in either month. The 12-month average rate 4 overcomes this volatility by comparing average Harmonized Indices of Consumer Prices (HICPs) in the latest 12 months to the average of the previous 12 months. This measure is less sensitive to transient changes in prices. The monthly rate compares price levels between the two latest months. Although up-to-date, it can be affected by seasonal and other effects. The impact of a particular component measures the change in the headline inflation due to the inclusion of that component in the HICP. The impact takes account of both the weight and whether the inflation for that component is higher or lower than the all-items inflation rate. For example, the impact of tobacco is equal to the difference between the all-items inflation rate and the rate for all-items excluding tobacco. Impacts are not strictly additive. HICPs designed for international comparison Harmonized Indices of Consumer Prices (HICPs) are harmonized inflation figures required under Article 121 of the Treaty of Amsterdam (109j of the Treaty on European Union). They are designed for international comparison of consumer price inflation. The focus is on quality and comparability among the indices of different countries as well as on their relative movements. Price changes as measured by the HICPs, the Monetary Union Index of Consumer Prices (MUICP), the European Index of Consumer Prices (EICP) and the European Economic Area Index of Consumer Prices (EEAICP) are used as measures of inflation in the Member States, in the euro area, in the European Union, and in the European Economic Area. The MUICP is used by, among others, the European Central Bank (ECB) as a main indicator for monetary policy management for the euro area (see ECB press release, 8 May 2003). The Member States HICPs are supplied by the National Statistical Institutes; the MUICP, EICP and EEAICP are compiled by Eurostat. The HICP is computed as an annual chain index allowing weights to be changed each year. HICP aggregates are calculated as weighted averages of the HICPs using the weights of the countries and sub-indices concerned. The weight of a country is its share of the household final monetary consumption expenditure in the total of the country group. For the MUICP this is expressed in euro, for the EICP and the EEAICP it is expressed in purchasing power standards. The MUICP is treated as a single entity within the EICP and EEAICP starting from 1999. Additional information More information on HICPs can be obtained from the monthly publication Data in focus, Economy and Finance on "Harmonized indices of consumer prices". About 100 MUICP, EICP, EEAICP and HICP sub-indices with corresponding weights are available in Eurostat s database. Further details can be found on the HICP section of the Eurostat website: http://epp.eurostat.ec.europa.eu/portal/page/portal/hicp/introduction. Future release dates Scheduled publication dates for the coming months are: Index for MUICP flash estimates HICP News Releases June 2009 30 June 2009 15 July 2009 July 2009 31 July 2009 14 August 2009 August 2009 31 August 2009 16 September 2009 1. Euro area inflation is measured by the MUICP ( Monetary Union Index of Consumer Prices as defined in Council Regulation (EC) No 2494/95 of 23 October 1995) which is the official euro area aggregate. The euro area initially included Belgium, Germany, Ireland, Spain, France, Italy, Luxembourg, the Netherlands, Austria, Portugal and Finland. Greece was included from January 2001, Slovenia from January 2007, Cyprus and Malta from January 2008 and Slovakia from January 2009. New Member States are integrated into the MUICP using a chain index formula. 2. The MUICP flash estimate for May 2009, published on 29 May 2009, was 0.0%. 3. EU inflation is measured by the EICP ( European Index of Consumer Prices as defined in Council Regulation (EC) No 2494/95 of 23 October 1995) which is the official EU aggregate. The EU included 15 Member States until April 2004, 25 Member States from May 2004 until December 2006 and 27 Member States from January 2007. New Member States are integrated into the EICP using a chain index formula. 4. Measure used to determine price stability in Convergence reports by the Commission to the Council. 5. Data for the United Kingdom for May 2009 were not available in time for publication. Due to this fact, EU and EEA totals were calculated using Eurostat estimates. 6. EU totals for April 2009 have been revised, as Eurostat estimates have been replaced by actual data for the United Kingdom.

Issued by: Eurostat Press Office Tim ALLEN Tel: +352-4301-33 444 eurostat-pressoffice@ec.europa.eu For further information on Methodology: Angélica ARELLANO-VAILLANT Christine WIRTZ Tel: +352-4301-32 004 estat-hicp-methods@ec.europa.eu Eurostat News Releases on the internet: http://ec.europa.eu/eurostat Selected Principal European Economic Indicators: http://ec.europa.eu/eurostat/euroindicators